Duplex with Private Fenced
New
For Sale
$615,000
133 Rainbow Ct, Cary, NC 27511
Tenant-occupied two-unit property near downtown Cary, parks, bus service, and shopping.
Property Size2,450 SF
Price / SF$251.02
Days on Market3
Property Features for 133 Rainbow Ct
General Information
Standard status
Active
Size
2,450 SF
Property subtype
Multi-Family
Building Details
Year Built
1973
Listing Agency:
Spencer Enterprises
Listed By:
Gerald Spencer · License #173261
(919) 596-7677
Source:
Rubyhenderson
Added: Sep 1
Changed: Sep 2
Last Checked: Sep 2 at 7:20PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Spencer Enterprises
Investment Insights
Based on property information with market context.
This 1973 duplex includes one three-bedroom, one-and-a-half-bath unit and one two-bedroom, one-and-a-half-bath unit. Both residences are tenant occupied on month-to-month arrangements, with tenants interested in continuing occupancy. Improvements include HVAC systems installed in both units in 2021, a water heater replaced in the two-bedroom unit in 2022, and another replaced in the three-bedroom unit in 2023. The roof was replaced in 2017 with limited-lifetime shingles, and replacement windows were updated in 2016.
The property features a brick-and-siding exterior, a crawlspace with a vapor barrier and dehumidifier installed in 2015, and a large private fenced yard on a cul-de-sac. It is within walking distance of downtown Cary, a park, bus service, and shopping.
The property features a brick-and-siding exterior, a crawlspace with a vapor barrier and dehumidifier installed in 2015, and a large private fenced yard on a cul-de-sac. It is within walking distance of downtown Cary, a park, bus service, and shopping.
Key Highlights
- Two‑unit duplex with one 3BR/1.5BA residence and one 2BR/1.5BA residence
- Both units are currently tenant occupied on month‑to‑month arrangements
- New HVAC systems in both units installed in 2021
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$28,283
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.60%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$565,660
$565.7K
Cap Rate 7%
$404,043
$404.0K
Cap Rate 9%
$314,256
$314.3K
Market Conditions
NOI Build-Up for 2,450 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$42.6K $17.40/SF
− Vacancy
−$2.2K −$0.91/SF
EGI
$40.4K $16.49/SF
− OpEx
−$12.1K −$4.95/SF
NOI
$28.3K $11.54/SF
Area
Cary, NC
Vacancy
5.22%
Lease Rate
$17.40 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$565,660
Cap Rate 7%
$404,043
Cap Rate 9%
$314,256
Alternative Uses
Best Use
Multifamily LT 5
$404.0K
$353.5K – $471.4K
NOI $28,283 @ 7.0% cap · market cap 4.60%
Second Best
Apartment 5plus
$371.1K
$324.7K – $433.0K
NOI $25,977 @ 7.0% cap · market cap 4.22%
Theoretical Best
Office A
$685.5K
$599.8K – $799.8K
NOI $47,986 @ 7.0% cap · market cap 7.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,325
Businesses Nearby
Explore this area
Business Placement
Demographics for 27511, NC
32,786
Population
14,359
Households
2.3
Avg Household Size
42
Median Age
58%
College-Educated
93%
High-School Grad
11.7 sq mi
ZIP Area
2,802
Density / Sq Mi
$104,072
Median Household Income
$50,778
Median Earnings
$1,436
Median Rent
$416,600
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Tenant-occupied two-unit property near downtown Cary, parks, bus service, and shopping.
Where is this duplex located?
The property is located at 133 Rainbow Ct Cary, NC.
What is the asking price?
The asking price for this property is $615,000.
What are key features of this property?
This property features: Two‑unit duplex with one 3BR/1.5BA residence and one 2BR/1.5BA residence; Both units are currently tenant occupied on month‑to‑month arrangements; New HVAC systems in both units installed in 2021
